Searching with Friends

A. Stefano Caria (), Simon Franklin and Marc J. Witte ()
Additional contact information
A. Stefano Caria: University of Bristol
Marc J. Witte: Vrije Universiteit Amsterdam

No 13857, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study how active labor market policies affect the exchange of information and support among jobseekers. Leveraging a unique social network survey in Ethiopia, we find that a randomized job-search assistance intervention reduces information sharing and support between treated jobseekers and their active job-search partners. Due to lower job-search support, untreated individuals search less and, suggestively, have worse employment outcomes. These results are explained by a model of networks where unemployed individuals form job-search partnerships to exploit the complementarities of job search. These partnerships are broken if policy creates inequality in the access to information about job vacancies.

Keywords: job search; social networks; RCT; active labor market policies (search for similar items in EconPapers)
JEL-codes: D8 D85 J64 L14 O12 (search for similar items in EconPapers)
Pages: 80 pages
Date: 2020-11
New Economics Papers: this item is included in nep-lab, nep-net and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Journal of Labor Economics, 2023, 41 (4), 887–922

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Related works:
Journal Article: Searching with Friends (2023)
Working Paper: Searching with friends (2018)
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